The wholesale used vehicle market took a dramatic turn in the past week, with prices accelerating.
The market reversed months of depreciating values with prices surging into positive territory. According to BlackBook’s Market Insights, wholesale vehicles increased by 0.17 percent in the last week. Prices had dropped by 0.05 percent the previous week.
“Signs of recovery in the wholesale market are emerging in mid-March, marked by a solid auction conversion rate and encouraging trends in both car and truck segments,” BlackBook reported. “A modest dip in auction inventory and a surge in buyer activity suggest a positive shift in market dynamics as we mark the official start of spring.”
The nine car segments increased in price by $3 or 0.02 percent. Mid-size cars led the gains, increasing by $41 or 0.35 percent.
The 13 truck and SUV categories jumped in price by $44 or 0.24 percent. Ten categories increased led by minivans gaining $90 or 0.59 percent. Only mid-size and full-size luxury crossover SUVs and compact vans dropped in price.
Full-size pickups increased by $14 or 0.06 percent, its first gain in 40 weeks, according to BlackBook.
“This is a noteworthy change from the sharp depreciation experienced last November, when values declined over 2 percent in just one week,” BlackBook said.
The auction sales rate stayed at a robust 57 percent.
“As we reach mid-March, there are indications of positivity in the wholesale market, evidenced by a steady auction conversion rate of 57 percent,” BlackBook noted.
